Janardhan Reddy grew up in a construction environment in Tumkur, Karnataka, where his father, a Class 1 PWD contractor, managed owned and rented equipment. This early exposure gave him deep insights into the sector. Today, he leads AUEQI (pronounced Aaki), short for ‘An Aura of Equipment’ – a tech-driven platform simplifying rentals and boosting productivity. Recognised as an innovator by the Karnataka government, he is supported by the Rajiv Gandhi Entrepreneurship Programme and is a final-round applicant for Elevate 2024. In this conversation with CW, he shares how AUEQI is bridging critical gaps in equipment management, infusing structure, transparency and technology into a fragmented industry.What inspired you to launch AUEQI and what specific gap in the construction equipment rental space were you aiming to address?Growing up, I was surrounded by construction and rental activity; our sites had 20-30 workers and various machines. This environment shaped my understanding of the industry. In 2015, I began handling our rental operations and scaled the fleet tenfold, working with clients from L&T and KEC to individual contractors. I graduated in mechanical engineering and worked with Volvo Construction Equipment as a service engineer. In 2018, I launched a BKT Tires dealership in the off-highway segment, gaining experience in sales, finance and customer engagement. Later, I completed a PGDM in marketing with a focus on B2B and digital business, and worked in Bosch’s mobility solutions marketing team.These experiences gave me a complete view of the sector. I found a core issue: the rental space in India is highly fragmented, lacking transparency and efficiency. Project managers face delays, limited visibility and fraud. Equipment owners struggle with poor utilisation, market inaccessibility and payment delays. AUEQI was created to address these pain points – offering structured, tech-enabled solutions that connect owners and contractors seamlessly.How does AUEQI improve the rental experience over traditional models?Traditional rentals are manual, unorganised and based on informal negotiations. AUEQI digitises every step, from enquiry and booking to deployment and tracking. Contractors get real-time machine availability, verified vendors and fleet insights for faster, more reliable service. Equipment owners access verified leads, dashboards, alerts and greater operational visibility. With digital contracts, automated support, and centralised dashboards, we’re redefining rental logistics – like Uber, but for construction equipment.How are users leveraging real-time tracking and insights to boost utilisation? We prioritise machines under five years old and inspect each listing across key parameters: tyres, buckets, safety gear and condition. SOPs ensure standard servicing, while automated checks track onboarding, maintenance and deployment. Documents like RC, insurance and fitness certificates are digitally verified. Operators are vetted through licence checks, experience reviews and safety compliance. Contractors can request operators suited to their project. Our rating system evaluates machines and operators across performance metrics, improving accountability. Real-time analytics drive smarter decisions and better utilisation.How is AUEQI driving sustainability and reducing the industry's carbon footprint? AUEQI promotes efficient equipment use, reducing unnecessary transport and supporting eco-friendly practices. For instance, one client planned to move a concrete machine 500 km from Hyderabad to Bengaluru, costing Rs 50,000 and 200 litre of diesel. With AUEQI, they sourced a similar machine just 60 km away, cutting transport costs to Rs 7,000 and fuel usage to 25 litre.We prioritise onboarding newer, fuel-efficient machines and conduct condition checks to minimise fuel waste. Shared usage reduces idle time and the need for new manufacturing. We’ve also begun onboarding electric and battery-operated equipment. One client reduced their fleet size by 30 per cent using our insights, resulting in substantial fuel and emission savings. AUEQI supports a circular economy and greener infrastructure.What rental trends are you seeing in Tier-2/3 cities and how is AUEQI enabling local growth? Rental demand in Tier-2 and Tier-3 cities is rising, driven by government projects like PM Gati Shakti, Bharatmala and the Smart Cities Misison, as well as private investment in logistics, real estate and warehousing. As India integrates into global supply chains, smaller cities are becoming vital infrastructure hubs. AUEQI supports this growth by onboarding local equipment owners – even those with just one or two machines – giving them digital visibility and a 5-10 per cent income boost. We assist aspiring entrepreneurs with structured onboarding and access to nationwide demand. Local operators benefit from skill development and project-based deployment, creating jobs while ensuring service quality. By connecting rural supply with urban demand and promoting digital inclusion, AUEQI drives decentralised and inclusive growth.How does AUEQI balance fair pricing for contractors and profits for owners?We use algorithm-based benchmarks that consider machine type, age and local demand to ensure fair pricing. Instead of offering unsustainable discounts, we deliver value through transparent rates, digital payments and usage analytics. By eliminating intermediaries, contractors avoid hidden charges and transact directly. Owners get data-driven insights to optimise pricing, reduce idle time and improve utilisation. Even with slightly lower margins, profitability increases due to reduced fraud, timely payments and fewer delays. Our commission (2.5-5 per cent) is minimal compared to the efficiency gained. Add-on tools like fleet management and digital documentation enhance transparency, creating a win-win model for both sides.How has AUEQI grown since its launch?Since launching in July 2024, AUEQI has generated Rs 3.5 million in revenue and served contractors across Karnataka. We’ve onboarded 1,000+ listings and built a database of 5,000+ machines, streamlining rentals for equipment owners and builders. We are now preparing to raise funds to scale operations, enhance our tech stack, onboard more equipment and expand our customer base.- KAVITA PARAB